In order to implement the results of Chinese President Xi Jinping's visit to the UK and the China-UK Economic and Financial Dialogue, the Shanghai Stock Exchange (SSE) and the London Stock Exchange (LSE) have been working together closely under the guidance of the securities regulators of the two sides since 2015, continuously advancing the feasibility study and various institutional arrangements for operation for the Shanghai-London Stock Connect. Recently, the China Securities Regulatory Commission (CSRC) publicly solicited opinions on the "Rules for Regulation of the Depositary Receipt Business for the Market Connectivity of Shanghai Stock Exchange and London Stock Exchange", indicating that the Shanghai-London Stock Connect program will be implemented soon, and the preparations have entered the last stage before the official launch.
The "Rules for Regulation (Draft for Comment)" provides important principles on the eastbound and westbound businesses of the Shanghai-London Stock Connect, including issuance and listing, cross-border conversion, continuous regulatory requirements, regulatory enforcement, investor protection and other matters. The specific operational arrangements will be reflected in the business rules of the SSE and other related institutions. At present, according to the deployment of the CSRC, the SSE has completed the formulation of the plan for the Shanghai-London Stock Connect business, with relevant business rules and business arrangements also in the process of preparation in an orderly way.
Going forward, the SSE will release the business rules as soon as possible and coordinate the final preparations for the market. In addition, the SSE will continue to work closely with the LSE and other market participants at home and abroad to jointly support the quality LSE-listed companies in listing and trading non-financial depositary receipts on the SSE. The SSE will also energetically support the domestic blue-chip enterprises in making full use of the Shanghai-London Stock Connect business channel and the LSE's position as an international financial center to issue the global depository receipts, expand their international businesses and improve their international visibility.
Opening up to the outside world is the only way for China to achieve prosperity, as well as an inevitable trend in the development of China's capital market. In order to stay true to our original aspiration and successfully accomplish our mission, the SSE will resolutely implement the policy of the 19th CPC National Congress on opening up to the outside world, continue to boost its internationalization strategy, and strive to build a world-leading exchange that meets the requirements of China as a socialist modernized power with Chinese characteristics, so as to better support the two-way opening up of China's capital market.